Unless the context otherwise requires, all terms used in R 500.522 to R 500.526 shall have the same meaning as in the act or elsewhere in these rules. In addition, the following definitions apply:

1. (a) "Plan" includes any plan, whether or not set forth in any formal written document or documents and whether or not approved in its entirety at 1 time.
2. (b) The definition of the terms "qualified stock option" and "employee stock purchase plan" that are set forth in sections 422 and 423 of the internal revenue code of 1954, as amended, are to be applied to those terms where used in R 500.523 to R 500.526. The term "restricted stock option" as defined in section 424(b) of the internal revenue code of 1954, as amended, shall be applied to that term as used in R 500.523 to R 500.526, but an option which meets all of the conditions of section 424(b), other than the date of issuance shall be deemed to be a "restricted stock option."
3. (c) The term "exercise of an option, warrant or right" contained in R 500.522 shall not include (i) the making of any election to receive under any plan and award of compensation in the form of stock or credits therefor if the election is made prior to the making of the award and if the election is irrevocable until at least 6 months after termination of employment; (ii) the subsequent crediting of the stock; (iii) the making of any election as to time for delivery of the stock after termination of employment if the election is made at least 6 months prior to any delivery; (iv) the fulfillment of any condition to the absolute right to receive stock; or (v) the acceptance of certificates for shares of stock.

History: 1979 AC.